Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — Investor Presentation (November 2021)
23 slides from Plato Income Maximiser's investor presentation, Nov 3, 2021
Slide 1: Company Update and Wholesale Placement
COMPANY UPDATE AND WHOLESALE PLACEMENT PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1
Slide 2: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. About this presentation For personal use only This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8) and Plato Investment Management Limited AFSL 504616 ABN 77 120 730 136 (‘
Slide 3: Agenda
Agenda For personal use only 01 02 Company overview and PL8 investment strategy Offer overview and performance 03 04 Market update Questions 3
Slide 4: Company overview and Offer overview
For personal use only Company overview and Offer overview 4
Slide 5: PL8 Overview
PL8 Overview PLATO INCOME MAXIMISER LIMITED For personal use only First and only Based on the Designed specifically Australian Listed investment strategy of with retiree investors Investment Company the Plato Australian in mind (pension phase (LIC) paying monthly Shares Income Fund superannuation or
Slide 6: Delivering consistent monthly income
Delivering consistent monthly income INCREASED MONTHLY DIVIDENDS TO $0.005 PER SHARE For personal use only MONTHLY DIVIDENDS 0.6 0.5 0.4 Cents per share 0.3 0.2 0.1 0 Apr-18 Apr-20 Dec-17 May-18 Apr-19 May-19 May-20 Apr-21 May-21 Oct-18 Dec-18 Oct-19 Dec-19 Oct-20 Dec-20 Oct-21 Dec-21 Jan-18 Mar-18
Slide 7: Price has closely tracked NTA
Price has closely tracked NTA PL8 PRICE VERSUS PRE-TAX NTA SINCE LISTING For personal use only $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Mar-20 May-17 Jul-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Nov-19 Jan-20 May-20 Jul-20 Nov
Slide 8: PL8 Wholesale Placement
PL8 Wholesale Placement DETAILS OF THE PLACEMENT Issue price: $1.11 per share For personal use only • Issue price equivalent to the pre-tax NTA on 2 November 2021 • Issue price is a 13.6% discount to the closing share price on 2 November 2021 Placement size: $ 71.3 million (64.2 million shares) • 15
Slide 9: PL8 Share Purchase Plan
PL8 Share Purchase Plan Share Purchase Plan (SPP) For personal use only • Shortly after the Wholesale Placement closes, PL8 will undertake a Share Purchase Plan • Capped at $50 million (eligible shareholders can each invest a maximum of $30, 000) • PL8 may (in its absolute discretion) scale back app
Slide 10: PL8 investment strategy and performance
For personal use only PL8 investment strategy and performance 10
Slide 11: PL8 delivering high income
PL8 delivering high income 12 month realised yield* For personal use only 7.0% 6.0% 6.0% 5.0% 4.7% 4.0% 3.0% 2.0% 1.0% 0.1% 0.0% RBA Cash Rate S&P/ASX 200 PL8 CASH 0.1% 3.5% 4.2% FRANKING 0.0% 1.2% 1.8% *to 30 September 2021, Plato, Bloomberg 11
Slide 12: Chart of Plato Income Performance
Chart of Plato Income Performance Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) For personal use only Indexed to 1 since inception 3.80 3.30 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020
Slide 13: Market Update
For personal use only 13 Market Update
Slide 14: RBA forecasts three years of record low 0.1% cash rate
RBA forecasts three years of record low 0.1% cash rate OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER For personal use only RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jul-2006 Jul-2009 Jul-2012 Jul-2015 Jul-2018 Jul-2021 Oct-2005 Jan-2008 Oct-2008 Oct-2011 Oct-2014 Oct-2
Slide 15: Yields on all asset classes have fallen
Yields on all asset classes have fallen BUT NOTE THE RECENT INCREASE For personal use only Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% May-2013 May-2014 May-2015 May-2016 May-2017 May-2018 May-2019 M
Slide 16: Tax effective buy-backs can be very advantageous
Tax effective buy-backs can be very advantageous CBA BUYBACK – WORTH 14% AFTER TAX FOR ZERO TAX INVESTORS For personal use only • A$6bn off market buyback - >3.5% of shares on issue • Worth 14% for zero tax-paying investors (e.g. many pensioners) for every share successfully tendered • 79.4% scale-b
Slide 17: Big Aussie income stocks doing it tough!
Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS For personal use only Price Performance - Rebased % of Gross Dividend Income - FY21 1.30 1.20 1.10 BHP Group 1.00 Commonwealth Bank Fortescue Metals 0.90 ANZ 0.80 National Australia Bank Rio Tinto 0.70 Other 0
Slide 18: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps AGL ENERGY UP TO 14% GROSS DIVIDEND YIELD For personal use only Source: Plato, Bloomberg 18
Slide 19: Results season August 2021 - Dividends
Results season August 2021 - Dividends EARNINGS UP AND DIVIDENDS EVEN MORE For personal use only • Over $38bn in dividends have been declared, $17bn more than last year 2020 AND 2021 CHANGE IN DIVIDENDS (VS PRIOR and $10bn more than in 2019. COMPARABLE PERIOD) • Strong dividend increases: Average Me
Slide 20: Dividend Outlook has improved significantly over past year
Dividend Outlook has improved significantly over past year LARGE DIVIDEND AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET For personal use only Source: Plato, based on MSCI World IMI (Australian portion) 20
Slide 21: Asset Class Outlook for Income
Asset Class Outlook for Income FORECAST 12 MONTH INCOME AS AT 01/09/2021 For personal use only 31/12/2020 2/03/2021 1/09/2021 6% 5% 4% 3% 2% 1% 0% Official Overnight 10yr Aust Bonds Term Deposits* Company BB MSCI World ex REITs Aust Equities Cash Credit* Aust (Gross) Source: Plato, Bloomberg, *RBA.
Slide 22: Conclusion
Conclusion For personal use only Bad news: Interest rates to remain at historic lows – 2-3 years of bad news for retirees in term deposits Good news: Dividends are rebounding strongly – Plato dividend cut model returns to normal – Strong dividends from iron ore miners and banks – Take advantage of t
Slide 23: Thank You - Questions
For personal use only 23 THANK YOU Questions
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